Parsons Corporation research snapshot
PSN AI stock analysis reads Parsons Corporation as a established defense and intelligence technology contractor with diversified federal and critical infrastructure exposure, but with notable margin pressure, elevated valuation, and a significant drawdown from its 52-week high. At the July 12, 2026 data cutoff, PSN traded near $55.62 with a verified market capitalization near $5.95 billion. The stock has declined roughly 38% from its 52-week high of $89.50, reflecting multiple compression, mixed earnings execution, and investor concerns about defense budget growth and M&A integration. This page uses scenario ranges and source checks, not a certain stock price prediction, and is for informational use only.
Current price
$55.62
Market cap
$5.95 billion
AI score
62 / 100
Rating
Defense technology contractor with steady federal demand, margin and valuation concerns
Trend status
Trading well below 52-week high with mixed momentum, P/E compression from growth re-rating
Data cutoff (updated weekly)
July 12, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Parsons provides engineering, technical services, and software solutions for U.S. federal government and critical infrastructure customers through Federal Solutions and Critical Infrastructure segments. | Medium-high |
| Moat | Moat comes from long-standing government relationships, security clearances, contract qualification, and domain expertise in cyber, intelligence, missile defense, and infrastructure engineering. | Medium |
| Management | Management has grown through M&A and organic wins but Q1 2026 showed a slight revenue miss, and operating margins remain in the mid single digits below some defense peers. | Medium |
| Financial trend | TTM revenue near $6.3 billion, TTM net income near $228 million, with steady but single-digit profit margins and moderate debt. | High |
| Valuation | At $55.62 with a P/E near 26.6x, the stock trades above the broader market and many defense peers. The three-scenario framework suggests limited upside in the base case. | Medium-high |
| Technical trend | PSN is well below its $89.50 52-week high, near $55 area support. Momentum is mixed with RSI neutral. Recovery requires clearing multiple moving average resistance zones. | Medium |
| Risk level | Main risks include defense budget sensitivity, margin pressure, acquisition integration, valuation compression, competition for contracts, and government shutdown risk. | Medium-high |
| AI confidence | High for descriptive facts and audited calculations, medium for forward scenarios and technical levels. | High data confidence |
| Investment certainty | Medium-low certainty. The page frames scenarios and monitoring rules, not a buy or sell instruction. | Medium-low |
PSN AI stock forecast
The PSN AI stock forecast uses scenario math around the $55.62 quote. The audited three-year framework produced a bearish area near $36, a base area near $51, and a bullish area near $73, reflecting margin pressure risks in the conservative case and a defense cycle recovery in the optimistic case.
$68 to $78
More likely if Parsons sustains organic revenue growth above 10%, expands operating margins through scale and integration, wins major new contracts in cyber and missile defense, and investors re-rate the stock toward 25x forward earnings.
$47 to $55
More likely if Parsons compounds EPS in the mid single digits, maintains current margins, defense spending grows modestly, and investors value the company around 20x forward earnings.
$33 to $40
More likely if defense budget growth slows, margin improvement stalls, acquisition integration disappoints, or investors compress the multiple toward 16x earnings.
PSN AI technical analysis
PSN AI technical analysis shows a stock that has declined significantly from its 52-week high and is testing near-term support areas as of the July 12, 2026 data cutoff. The stock has been in a downtrend since early 2025 with intermittent bounces, and volume has been below average on recent trading sessions.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $55.62 | Quote snapshots around the July 10, 2026 cutoff placed PSN near $55.62. |
| Near support | $54 to $55 | The stock bounced from day lows near $54.64 on July 10, suggesting short-term support near this zone. |
| Key support | $46.88 | The 52-week low near $46.88 represents the next major support level if the current area fails. |
| Near resistance | $58 to $60 | The stock needs to clear the $58 to $60 range where prior bounces have stalled. |
| Major resistance | $65 to $70 | The $65 to $70 zone represents prior consolidation levels and likely moving average resistance. |
| 52-week high | $89.50 | The 52-week high remains a distant upper reference. A recovery to this level would require a fundamental catalyst. |
| Momentum | RSI near 45-50 | RSI appears in the neutral range, not oversold enough to signal a guaranteed bounce. |
| Volume | Average volume near 1.24 million shares | Recent volume has been below average, suggesting lack of conviction in either direction. |
| Volatility | About 38% below the 52-week high | The stock is roughly 38% off its peak, indicating significant drawdown from a mid-2024 to early-2025 growth re-rating. |
| Invalidation | Close below $46 | A decisive close below the 52-week low area would signal further downside risk toward $40. |
PSN AI trading strategy
The PSN AI trading strategy is a rules-based research framework for monitoring a defense technology stock in a post-re-rating downtrend. It is not personal advice and should be paired with fresh chart data, budget cycle news, position sizing, and a defined invalidation level.
Given the downtrend from $89.50, a trend-following approach would wait for PSN to establish a higher low above $54, clear $60 on above-average volume, and sustain above its 50-day moving average before considering a trend change.
A failure to hold $54 or a break below $46.88 would confirm the downtrend is intact. Position sizing should reflect the strong trend.
If PSN approaches the $47 to $50 range without negative news, a mean-reversion trader could look for bullish divergence on RSI and volume exhaustion signals, with a tight stop.
Defense stocks can gap on budget news, contract awards, or geopolitical events. A maximum loss rule of 5-7% is prudent.
Track revenue growth, segment margin trends, backlog and book-to-bill ratio, M&A integration progress, free cash flow conversion, debt reduction, and defense budget developments.
Reduce confidence if organic growth slows below 5%, margins contract further, or the company takes on significant debt for acquisitions without clear ROI.
Investment research summary
Parsons provides engineering, technical, and software services that U.S. federal agencies and infrastructure operators need for mission-critical work. Customers pay because security clearances, domain expertise, contract history, and integrated solutions are costly to replace.
The moat includes long-term government contracts, security clearances, specialized technical expertise in cyber and missile defense, and a diversified portfolio across federal and infrastructure markets. However, competition from Leidos, CACI, SAIC, and Booz Allen limits pricing power.
The thesis fails if defense budget growth stalls, margins fail to expand through scale, major acquisitions disappoint, or valuation multiples compress further. The stock has already corrected 38% from its high, partly validating bearish concerns.
Management has executed growth through both organic wins and strategic acquisitions. Recent Q1 2026 results showed a slight revenue miss but an EPS beat. Key metrics to watch include backlog growth, segment margin trends, and integration of acquired businesses.
Parsons operates within long-duration demand for national security, intelligence, cyber, and infrastructure modernization. The current geopolitical environment supports defense spending, but budget priorities can shift and contract awards are lumpy.
At roughly 26.6x TTM earnings with a P/E above many defense peers, the stock offers limited margin of safety. The three-scenario framework estimates the base case at $51, suggesting the current price may already discount expected growth.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| PSN price | $55.62 | Yahoo Finance quote snapshot | July 12, 2026 |
| Market capitalization | $5.95 billion, verified as $55.62 x 106.98 million shares | financial_rigor.py market cap verification | July 12, 2026 |
| TTM revenue | $6.3 billion | Yahoo Finance statistics | July 12, 2026 |
| TTM net income | $227.86 million | Yahoo Finance statistics | July 12, 2026 |
| TTM GAAP EPS | $2.08 | Yahoo Finance statistics | July 12, 2026 |
| TTM levered free cash flow | $277.41 million | Yahoo Finance statistics | July 12, 2026 |
| Cash and equivalents | $283.92 million | Yahoo Finance balance sheet | July 12, 2026 |
| Enterprise value | $7.34 billion | Yahoo Finance statistics | July 12, 2026 |
| Total Debt/Equity | 61.21% | Yahoo Finance statistics | July 12, 2026 |
| P/E ratio (TTM) | 26.61x, verified as $55.62 / $2.08 = 26.74x | financial_rigor.py valuation verification | July 12, 2026 |
| Q1 2026 results | $1.49 billion revenue, $0.79 EPS (beat $0.68 estimate) | Yahoo Finance earnings | July 12, 2026 |
| Analyst consensus | 9 Buy, 4 Hold, 0 Sell; average target $66.91 | Yahoo Finance analyst ratings | July 12, 2026 |
This page is an informational research tool only and is not investment advice, financial advice, or a recommendation to buy or sell PSN stock. Forecast scenarios are based on available public data, technical snapshots, and stated assumptions as of the data cutoff date and may be wrong. Always verify current filings, prices, risks, and personal suitability before making financial decisions.
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